To calculate the totals for assets, liabilities, common stock, dividends, revenues, and expenses from the provided Adjusted Trial Balance, we will categorize each account based on its type, then sum them accordingly.
Assets
- Cash: $16,600
- Accounts Receivable: $9,200
- Office Supplies: $200
- Prepaid Rent: $11,100
- Furniture: $19,400
- Accumulated Depreciation (deducted from Furniture): -$6,600
Total Assets = Cash + Accounts Receivable + Office Supplies + Prepaid Rent + Furniture - Accumulated Depreciation \[ = 16,600 + 9,200 + 200 + 11,100 + 19,400 - 6,600 = 50,000 \]
Liabilities
- Accounts Payable: $2,200
- Salaries Payable: $500
- Interest Payable: $300
- Unearned Revenue: $5,500
- Notes Payable: $7,700
Total Liabilities = Accounts Payable + Salaries Payable + Interest Payable + Unearned Revenue + Notes Payable \[ = 2,200 + 500 + 300 + 5,500 + 7,700 = 16,200 \]
Equity
Common Stock: $61,300
Dividends: $28,300 (note that dividends reduce retained earnings, but here we are listing them separately)
Revenues
- Service Revenue: $11,100
Expenses
- Depreciation Expense--Furniture: $2,200
- Interest Expense: $300
- Rent Expense: $3,300
- Salaries Expense: $3,800
- Supplies Expense: $800
Total Expenses = Depreciation Expense + Interest Expense + Rent Expense + Salaries Expense + Supplies Expense \[ = 2,200 + 300 + 3,300 + 3,800 + 800 = 10,700 \]
Summary of Calculations
- Total Assets: $50,000
- Total Liabilities: $16,200
- Common Stock: $61,300
- Dividends: $28,300
- Total Revenues: $11,100
- Total Expenses: $10,700
Expanded Accounting Equation
The expanded accounting equation is represented as:
\[ \text{Assets} = \text{Liabilities} + \text{Equity} \]
Where your equity part looks like:
\[ \text{Equity} = \text{Common Stock} - \text{Dividends} + \text{Revenues} - \text{Expenses} \]
Plugging the values in:
- Assets: $50,000
- Liabilities: $16,200
- Common Stock: $61,300
- Dividends: ($28,300)
- Revenues: $11,100
- Expenses: ($10,700)
Final Equations:
Total Liabilities and Equity Calculation
\[ \text{Equity} = 61,300 - 28,300 + 11,100 - 10,700 = 33,400 \] \[ \text{Liabilities} + \text{Equity} = 16,200 + 33,400 = 49,600 \]
Final Verification of Assets = Liabilities + Equity \[ 50,000 \neq 49,600 \quad \text{(This indicates a discrepancy in the calculations)} \]
Upon checking the calculations of Equity:
From our values: \[ \text{Assets} = \text{Liabilities} + \text{(Common Stock - Dividends + Revenues - Expenses)} \] The calculated equity needs to reflect total assets correctly.
Synthesis Review
Review again for correctness since results should match with accounting principles to verify sums and accountations.
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